The Relationship of $325,000 to $125,000, Expressed as a Ratio

question 107

Multiple Choice

The relationship of $325,000 to $125,000, expressed as a ratio, is

• A) 2.0 to 1
• B) 2.6 to 1
• C) 2.5 to 1
• D) 0.45 to 1

---

Definitions:

Standard Hours

The predetermined amount of time expected to complete a task or to produce a unit of output under normal conditions.

Standard Variable Overhead Rate

The predetermined rate at which variable overhead costs are expected to be incurred relative to a certain measure of activity, such as labor hours.

Direct Labour Hours

Direct Labour Hours represent the amount of time spent by workers directly involved in manufacturing a product or providing a service.